BigBear.ai (NYSE:BBAI) Posts Quarterly Earnings Results, Misses Expectations By $0.04 EPS

Key Points

• BigBear.ai posted Q1 EPS of ($0.12), missing consensus by $0.04, while revenue was $34.44 million; the company remains unprofitable with a Q1 net loss of $56.8 million and adjusted EBITDA of ‑$9.9 million.
• The firm ended the quarter with a strong liquidity position of $431 million in cash and investments, a backlog up 14% to $281.9 million, and reaffirmed 2026 revenue guidance of $135–$165 million.
• Operational momentum includes a ~$53 million sole‑source IC contract and Ask Sage-driven product wins that helped gross margin expand to 34%, but results were weighed down by higher SG&A/R&D and about $36 million of non‑cash debt conversion charges.

BigBear.ai (NYSE:BBAI - Get Free Report) issued its earnings results on Tuesday. The company reported ($0.12) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.08) by ($0.04), FiscalAI reports. BigBear.ai had a negative return on equity of 18.22% and a negative net margin of 230.21%.The firm had revenue of $34.44 million during the quarter, compared to the consensus estimate of $33.60 million.

Here are the key takeaways from BigBear.ai's conference call:

• BigBear.ai ended Q1 with a strong balance sheet of $431 million in cash and investments, a backlog up 14% to $281.9 million, and it reaffirmed 2026 revenue guidance of $135–$165 million, supporting near-term financial flexibility.
• Revenue was flat at $34.4 million year‑over‑year, but gross margin expanded sharply to 34%, driven by a higher mix of GenAI platforms and products from the Ask Sage acquisition.
• Despite margin improvement, the company remains unprofitable with a Q1 net loss of $56.8 million and adjusted EBITDA of ‑$9.9 million, weighed by higher SG&A (including amortization and legal costs), R&D investments, and about $36 million of non‑cash charges related to debt conversion.
• Operational momentum includes multiple wins and product progress — a ~$53 million classified sole‑source IC contract, airport deployments ($7M) using BearScan/TrueFace, shipbuilding and DoD/NASA Ask Sage contracts, plus ongoing integrations and a new commercial Ask Sage offering that shift revenue mix toward technology.

BigBear.ai Trading Down 0.4%

Shares of NYSE:BBAI traded down $0.02 during trading hours on Tuesday, hitting $4.16. 41,294,711 shares of the company's stock traded hands, compared to its average volume of 49,545,504. BigBear.ai has a 1 year low of $2.96 and a 1 year high of $9.39. The business has a fifty day moving average price of $3.75 and a 200-day moving average price of $5.16. The firm has a market capitalization of $1.99 billion, a P/E ratio of -4.16 and a beta of 3.25. The company has a debt-to-equity ratio of 0.16, a current ratio of 1.78 and a quick ratio of 1.78.

Insider Activity

In other BigBear.ai news, Director Pamela Joyce Braden sold 80,000 shares of the business's stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $4.00, for a total transaction of $320,000.00. Following the completion of the transaction, the director owned 508,687 shares in the company, valued at $2,034,748. The trade was a 13.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. 0.54% of the stock is owned by company insiders.

Institutional Trading of BigBear.ai

A number of large investors have recently modified their holdings of the company. PNC Financial Services Group Inc. lifted its holdings in BigBear.ai by 150.9% during the fourth quarter. PNC Financial Services Group Inc. now owns 5,640 shares of the company's stock worth $30,000 after buying an additional 3,392 shares during the period. HM Payson & Co. lifted its holdings in BigBear.ai by 616.9% during the fourth quarter. HM Payson & Co. now owns 7,169 shares of the company's stock worth $39,000 after buying an additional 6,169 shares during the period. Hodges Capital Management Inc. purchased a new stake in BigBear.ai during the fourth quarter worth $54,000. Arete Wealth Advisors LLC purchased a new stake in BigBear.ai during the fourth quarter worth $64,000. Finally, Quadrature Capital Ltd purchased a new stake in BigBear.ai during the fourth quarter worth $69,000. Hedge funds and other institutional investors own 7.55% of the company's stock.

Analysts Set New Price Targets

Several brokerages have weighed in on BBAI. HC Wainwright reduced their price objective on BigBear.ai from $8.00 to $6.00 and set a "buy" rating on the stock in a research note on Tuesday, March 3rd. Wall Street Zen cut BigBear.ai from a "hold" rating to a "sell" rating in a research note on Saturday, January 10th. Cantor Fitzgerald reduced their price objective on BigBear.ai from $6.00 to $5.00 and set a "neutral" rating on the stock in a research note on Tuesday, March 3rd. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of BigBear.ai in a research note on Monday, April 20th. One research analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus price target of $5.50.

BigBear.ai Company Profile

BigBear.ai is a provider of artificial intelligence (AI) and data analytics solutions designed to deliver actionable insights for public sector and commercial clients. Headquartered in Columbia, Maryland, the company specializes in advanced analytics, machine learning, predictive modeling and network analysis to support decision-making in complex, data-rich environments. Its clientele spans defense and intelligence agencies, civil government organizations and enterprise businesses seeking to enhance mission outcomes and operational efficiency.

The company’s flagship offerings include an AI-driven analytics platform that integrates data engineering, algorithm development and visualization tools.

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